Abstract

CUEVAS-VARGAS, Héctor  and  CORTES-PALACIOS, Héctor Abraham. Effects of capital structure on innovation. Investig. adm. [online]. 2020, vol.49, n.126, 12602.  Epub Sep 11, 2020. ISSN 2448-7678.  https://doi.org/10.35426/iav49n126.02.

The aim of this paper is to analyze the effects of capital structure on the innovation of small and medium-sized (SMEs) companies in an emerging country. For this, an empirical study was carried out with a quantitative approach, explanatory and cross-sectional type based on a sample of 230 Mexican manufacturing SMEs, using the method of partial least squares structural equation modeling (PLS-SEM). The results reveal that both internal and external financing sources positively and significantly influence innovation. A limitation of the study is that the results are delimited to manufacturing SMEs in Aguascalientes, suggesting studies that consider other sectors. The originality of the work consists of the methodology used, which allowed us to identify the importance and performance of financing sources in the innovation of emerging economy SMEs. The findings show that internal financing had a greater significant impact on the innovation of these types of companies.

Keywords : Innovation; capital structure; internal financing; external financing; PLS-SEM; C38; G32; O32.

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